Latin America Extruded Snacks Market

Latin America Extruded Snack Food Market Size

The Latin America Extruded Snack Food Market size was calculated to be USD 4.16 Billion in 2024 and is anticipated to be worth USD 6.32 Billion by 2033, from USD 4.36 Billion in 2025, growing at a CAGR of 4.75% during the forecast period.

The extruded snack food market in Latin America refers to a category of processed foods manufactured through an extrusion process that involves high temperature and pressure, shaping raw ingredients into various forms such as puffed snacks, corn curls, cheese balls, and rice-based crisps. These snacks are known for their crisp texture, extended shelf life, and versatility in flavoring options. In recent years, this segment has gained significant traction across Latin American countries due to rapid urbanization, changing consumer lifestyles, and increasing disposable incomes.

Latin America’s expanding middle-class population is projected to reach over 300 million by 2027 which has led to greater demand for convenient, ready-to-eat products. As per Statista, packaged snack food consumption in the region grew at a compound annual rate of nearly 4% between 2018 and 2023. Brazil, Mexico, and Argentina remain key markets, collectively accounting for more than 60% of total regional sales. Moreover, local manufacturers have capitalized on traditional flavors while introducing healthier variants using non-GMO corn, quinoa, and legumes, aligning with evolving dietary preferences.

MARKET DRIVERS

Urbanization and Changing Consumer Lifestyles

Urbanization across Latin America has been a critical catalyst for the growth of the extruded snack food market. According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), over 80% of the region's population now resides in urban areas, a figure expected to rise to 86% by 2050. This demographic shift has resulted in faster-paced lifestyles, where convenience becomes a priority in daily food consumption. As people move to cities, they tend to spend less time preparing meals and increasingly rely on ready-to-eat options. A study conducted by NielsenIQ in 2023 revealed that 72% of urban consumers in Brazil prefer snacks that can be consumed on the goo, with extruded snacks being among the top choices due to their portability and long shelf life. Furthermore, working hours have increased, especially in major economies like Mexico and Colombia, where average workweeks exceed 42 hours per person. This leaves limited time for meal preparation, which is pushing consumers toward quick snacking alternatives. In addition, digital penetration and e-commerce expansion have made these products more accessible. MercadoLibre reported a 38% increase in snack food sales via online platforms in 2023 compared to the previous year. The convergence of urban living, digital accessibility, and lifestyle changes is creating a favorable environment for sustained demand in the Latin American extruded snack food market.

Youth Demographics and Snacking Culture

The youth population plays a pivotal role in driving the extruded snack food market across Latin America. According to data from the World Bank, nearly 30% of the region’s population was under the age of 15 in 2023, with a significant portion falling into the 15–35 age bracket—an age group highly inclined toward snacking habits. This youthful demographic is particularly drawn to innovative flavors, vibrant packaging, and branded products, all of which are hallmarks of the extruded snack segment. In countries like Peru and Ecuador, children and teenagers account for a large share of snack purchases, often influencing household buying decisions. A 2023 survey by Ipsos MORI found that 68% of teens in Chile and Argentina consume extruded snacks at least three times a week, with flavored corn chips and cheese-coated varieties being the most popular.

Moreover, social media trends and influencer marketing have amplified brand visibility among young consumers. Platforms like TikTok and Instagram frequently feature snack challenges and taste tests, reinforcing consumption patterns.

MARKET RESTRAINTS

Rising Health Awareness and Regulatory Pressure

Despite its growth trajectory, the Latin American extruded snack food market faces headwinds due to increasing health consciousness among consumers and stricter government regulations. According to the Pan American Health Organization (PAHO), obesity rates in the region have risen sharply, with over 60% of adults classified as overweight or obese in countries like Mexico, Chile, and Argentina. This growing public health concern has prompted governments to implement policies aimed at curbing excessive consumption of processed foods.

For example, in 2020, Mexico introduced front-of-package warning labels on foods high in sugar, sodium, and saturated fats—a regulation that directly affects many extruded snack products. As a result, sales of certain salty and sugary snacks declined by approximately 9% in the first two years following implementation, based on figures released by the Mexican National Institute of Public Health (INSP). Similarly, Chile enacted strict advertising restrictions targeting unhealthy foods during children’s television programming, reducing impulse buying behaviors. Additionally, consumers are shifting toward healthier alternatives, with 54% of respondents in a 2023 Latinobarómetro survey stating they actively avoid processed snacks. This change in perception has pressured manufacturers to reformulate products or introduce low-sodium, whole-grain, or gluten-free versions, adding complexity and cost to production.

Volatility in Raw Material Prices

Another pressing challenge for the Latin American extruded snack food market is the volatility in raw material prices for staple ingredients such as corn, wheat, and vegetable oils. These commodities form the base of most extruded snacks and are subject to fluctuations driven by climate conditions, geopolitical instability, and supply chain disruptions. According to the Food and Agriculture Organization (FAO), global maize prices surged by 47% in 2022 due to adverse weather in key producing regions such as the United States and Argentina. This had a direct impact on snack manufacturers in Latin America, where corn-based snacks dominate the market.

Furthermore, inflationary pressures across the region have compounded the issue. Central banks in Argentina and Peru recorded inflation rates exceeding 8% in 2023, affecting both input costs and consumer purchasing power. As a result, smaller manufacturers faced difficulties in maintaining profitability, while larger brands struggled to keep pricing competitive without compromising quality. This persistent instability in raw material pricing poses a substantial barrier to sustainable growth in the Latin American extruded snack food sector.

MARKET OPPORTUNITIES

Expansion of E-commerce and Digital Retail Channels

One of the most promising opportunities for the Latin American extruded snack food market lies in the rapid expansion of e-commerce and digital retail channels. According to a 2024 report by eMarketer, digital commerce in Latin America is projected to grow by 18% annually through 2026, reaching a market value of over USD 180 billion. This transformation is particularly evident in countries like Brazil and Mexico, where platforms such as Amazon, MercadoLibre, and Rappi have integrated snack delivery services, enabling consumers to purchase extruded snacks with just a few clicks. Additionally, the rise of omnichannel retail strategies combining physical stores with mobile apps and social commerce is enhancing product visibility and availability. In a survey conducted by NielsenIQ in late 2023, 58% of consumers in Colombia and Chile stated that they now prefer purchasing snacks online due to convenience and promotional offers. Brands are leveraging this trend by launching exclusive online flavors and limited-edition packs, fostering engagement and repeat purchases.

Moreover, digital platforms provide valuable consumer insights through data analytics, allowing manufacturers to tailor product offerings and marketing campaigns. With continued investment in logistics infrastructure and digital payment systems, the LatiAmericanca extruded snack food market stands to gain significantly from the ongoing digital retail revolution.

Demand for Functional and Nutrient-Enhanced Snacks

A notable opportunity emerging in the LatAmericanica extruded snack food market is the rising consumer interest in functional and nutrient-enhanced snacks. As awareness around nutrition and wellness increases, consumers are seeking snacks that offer added benefits beyond basic sustenance such as improved digestion, enhanced energy, or immune support.

According to a 2023 report by Euromonitor International, 43% of consumers in Latin America now consider health and wellness attributes when purchasing snacks, with fortified options gaining particular traction. This shift is especially pronounced among millennial parents and fitness-conscious individuals who prioritize balanced diets even when choosing convenience foods.

In response, manufacturers are innovating with ingredients such as prebiotic fibers, plant-based proteins, and vitamins. For example, in Brazil, a leading snack company launched a line of corn-based

extruded snacks enriched with vitamin D and calcium, reporting a 25% increase in sales within six months of release, as per Kantar Worldpanel. Similarly, in Mexico, quinoa-infused and chickpea-based extruded snacks have seen a 30% year-over-year growth in supermarket shelves, reflecting evolving dietary preferences. This trend is further supported by government initiatives promoting food fortification, particularly in countries with historically high rates of micronutrient deficiencies. By capitalizing on this demand for healthier formulations, the extruded snack food market in Latin America can unlock new growth avenues while aligning with broader public health goals.

MARKET CHALLENGES

Intense Competition and Brand Saturation

One of the most pressing challenges facing the LaAmericanrica extruded snack food market is the intense competition and increasing brand saturation. Over the past decade, the market has witnessed a surge in both multinational and local players entering the space, which is leading to fragmented market dynamics and aggressive pricing strategies. According to data from Euromonitor International, more than 300 snack food brands were active in the Latin American market in 2023, with major players such as PepsiCo, Grupo Bimbo, and Cheetos competing alongside regional favorites like Sabritas (Mexico), El Maíz (Argentina), and Torcido (Brazil). This influx has not only intensified price wars but also forced smaller manufacturers to invest heavily in branding, packaging, and marketing to remain relevant. In addition, consumer loyalty remains relatively low, with 62% of surveyed individuals in a 2023 NielsenIQ study indicating that they frequently switch brands based on promotions or novelty. This behavior makes it difficult for companies to establish long-term brand equity. Moreover, private-label and store-brand snacks have gained ground by offering similar taste profiles at lower price points, further eroding market share from established brands.

The proliferation of small-scale producers has also led to inconsistent quality standards, making differentiation challenging. As the market becomes increasingly crowded, companies must continuously innovate and adapt to maintain visibility and profitability in a highly competitive landscape.

Supply Chain Disruptions and Distribution Inefficiencies

Supply chain disruptions and distribution inefficiencies pose a significant challenge to the Latin America extruded snack food market, especially in rural and remote regions. Despite economic advancements, logistical infrastructure remains uneven across the continent, which is affecting timely product delivery and inventory management.

According to the World Bank’s Logistics Performance Index (LPI) 2023, several Latin American countries scored below the global average in terms of customs efficiency, infrastructure quality, and international shipment reliability. For instance, Bolivia and Paraguay ranked in the bottom 50 globally, contributing to delays in raw material procurement and finished goods distribution.

These inefficiencies are exacerbated by geographic barriers such as mountainous terrain in Peru and dense rainforests in parts of Brazil, which complicate transportation networks. As a result, snack manufacturers often face higher freight costs and longer lead times. In a 2023 report by McKinsey & Company, transport costs in Latin America were found to be up to 60% higher than in North America, impacting profit margins and limiting market expansion into underserved areas.

Moreover, frequent fuel shortages and political instability in countries like Venezuela and Ecuador have disrupted cross-border trade routes. These issues hinder the ability of snack producers to maintain consistent supply chains, ultimately affecting product availability and consumer satisfaction. Addressing these logistical hurdles will be crucial for ensuring sustained market growth across the region.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The corn-based extruded snacks segment was the largest and held 38.2% of the Latin America extruded snack food market share in 2024. Latin America is one of the largest producers of corn globally, with Brazil and Argentina among the top ten exporters. According to the United States Department of Agriculture (USDA), Brazil produced over 120 million metric tons of corn in 2023, ensuring a stable and cost-effective raw material supply for manufacturers. The affordability and availability of corn directly contribute to its widespread use in extruded snack production. Additionally, consumer preference plays a crucial role. Traditional snacks like tortilla chips, arepas, and carnitashitas have strong historical roots in countries such as Mexico, Colombia, and Peru.

The tapioca-based extruded snacks segment is likely to experience a CAGR of 9.6% during the forecast period. The growth of the segment is driven by rising demand for gluten-free and allergen-friendly products among health-conscious and celiac-afflicted consumers.

Tapioca starch, derived from cassava root, is naturally gluten-free and easily digestible, which makes it an ideal ingredient for functional and clean-label snacks. In Brazil alone, the number of consumers identifying as gluten-sensitive increased by 25% between 2020 and 2023, according to a study conducted by Kantar Worldpanel. This shift has prompted major snack manufacturers to introduce tapioca-based variants, including puffed snacks and crisps that are often marketed as healthier alternatives.

Moreover, tapioca’s versatility allows for diverse textures and flavor absorption, enabling innovation in product development. In Argentina, specialty stores reported a 30% increase in sales of tapioca-based extruded snacks in 2023, as noted by Euromonitor International.

By Distribution Channel Insights

The supermarkets and hypermarkets segment was accounted by holding 45.3% of the Latin America extruded snack food market share in 2024. In urban centers across Brazil and Mexico, large retail chains such as Carrefour, Walmart, and Grupo Modelo operate thousands of outlets, offering consumers access to both international and local snack brands under one roof. According to NielsenIQ, 68% of Latin American shoppers prefer purchasing packaged snacks from supermarkets due to perceived quality assurance and competitive pricing.

Furthermore, promotional activities such as multi-buy offers and in-store tastings significantly influence purchase decisions. In Chile, supermarket promotions accounted for a 22% increase in extruded snack sales during the 2023 holiday season, based on data from Mercatus Retail Intelligence.

The online retail segment is swiftly emerging with an anticipated CAGR of 14.3% in the coming years. According to a 2023 report by LatiNext, online grocery sales in Latin America surpassed USD 20 billion, with snack foods representing a significant portion of this growth. Platforms like MercadoLibre, Amazon, and Rappi have expanded their snack delivery services by offering next-day or same-day fulfillment options that cater to urban consumers seeking immediate gratification.

Moreover, younger demographics are driving this shift. A NielsenIQ survey revealed that 56% of consumers aged 18–34 in Colombia and Peru prefer buying snacks online due to ease of access and exclusive deals. Additionally, social commerce initiatives—such as TikTok Shop and Instagram Checkout—are gaining traction, allowing brands to engage directly with customers through influencer endorsements and targeted ads.

REGIONAL ANALYSIS

Brazil was the top performer in the Latin America extruded snack food market with 28.6% of share in 2024. Brazil has seen consistent demand for convenient, ready-to-eat snacks with a population exceeding 215 million and a growing middle class. The rise of health-focused snack variants has also contributed to market expansion. NielsenIQ reported that in 2023, 41% of Brazilian consumers opted for extruded snacks made from non-GMO corn or legumes, reflecting a broader trend toward cleaner labels. Brazil continues to dominate the Latin American extruded snack food landscape with ongoing investments in product diversification and digital marketing.

Mexico was positioned second in the Latin America extruded snack food market with 24.3% of the share in 2024. Mexican consumers exhibit some of the highest per capita snack consumption rates globally. According to the National Institute of Public Health of Mexico (INSP), the average person consumes over 10 kg of salty snacks annually, with extruded varieties making up more than half of that figure. The popularity of street food and informal snacking occasions further reinforces daily intake patterns.

Argentina extruded snack food market growth is likely to grow at faster rate in the next coming years. A key driver of growth is the increasing presence of modern trade channels. According to the Argentine Chamber of Food Industries (COPAL), supermarket chains now account for over 60% of snack food sales, replacing traditional kiosks and mom-and-pop stores. This shift enhances product visibility and brand exposure, especially for premium extruded snacks.

Moreover, the popularity of regional flavors such as chimichurri, provolone cheese, and mate-infused coatings has led to innovative product launches. In 2023, a Buenos Aires-based snack company introduced a line of quinoa-based extruded snacks, witnessing a 33% sales surge within six months, as reported by NielsenIQ.

Chile's extruded snack food market is expected to grow with prominent growth opportunities in the coming years. The country's developed urban centers and high per capita income drive consistent demand for packaged snacks, despite regulatory challenges aimed at curbing unhealthy eating habits. Santiago and Valparaíso serve as primary consumption hubs, where working professionals and students frequently opt for extruded snacks as midday refreshments. However, Chile’s stringent front-of-package labeling laws, implemented in 2016, have forced manufacturers to reformulate products to reduce sugar, sodium, and saturated fat content.

LEADING PLAYERS IN THE LATIN AMERICA EXTRUDED SNACK FOOD MARKET

PepsiCo Inc.

PepsiCo holds a dominant position in the Latin America extruded snack food market through its flagship brand Frito-Lay, offering products such as Cheetos, Doritos, and Sabritas. The company has tailored its product portfolio to align with regional tastes, incorporating local flavors and ingredients. PepsiCo’s strong distribution network ensures widespread availability across both urban and rural markets. Its investment in sustainable sourcing and innovation has strengthened its consumer trust and brand loyalty, which is making it a key influencer in shaping consumption trends across the region.

Grupo Bimbo S.A.B. de C.V.

As one of the world's largest baking companies, Grupo Bimbo has significantly expanded its presence in the extruded snacks sector in Latin America. Leveraging its deep-rooted understanding of local markets, the company offers a diverse range of savory extruded snacks that cater to evolving consumer preferences. Through strategic acquisitions and localized marketing strategies, Grupo Bimbo has built a robust supply chain infrastructure across several Latin American countries. Its commitment to quality and innovation supports its dominant role and enhances its competitive edge in the region.

Mondelez International, Inc.

Mondelez plays a crucial role in the Latin American extruded snack food market by delivering globally recognized brands such as Oreo and Ritz in snack formats. The company emphasizes product diversification and premium positioning to appeal to different consumer segments. Mondelez invests heavily in research and development to introduce healthier variants and functional snacks tailored to health-conscious consumers. With a focus on digital engagement and omnichannel distribution, the company continues to expand its footprint and influence in the region’s rapidly growing snack industry.

TOP STRATEGIES USED BY KEY MARKET PARTICIPANTS

One major strategy employed by leading players is product innovation and diversification, where companies continuously introduce new flavors, textures, and healthier formulations to cater to evolving consumer preferences. Brands are also focusing on clean-label and functional snacks enriched with nutrients to attract health-conscious buyers.

Another key approach is expanding distribution networks particularly iin ruraland underserved regions, while strengthening online retail partnerships. Companies are investing in logistics and e-commerce integration to enhance accessibility and ensure consistent product availability across multiple touchpoints.

Strategic branding and digital marketing have become essential tools for maintaining consumer engagement. Companies leverage social media, influencer collaborations, and targeted advertising campaigns to build brand loyalty and drive repeat purchases, especially among younger demographics who are more receptive to digital content and experiential branding.

KEY MARKET PLAYERS AND COMPETITIVE OVERVIEW

Major Players in the Latin America snack food market include Calbee, Diamond Foods, Kellogg’s, Frito-lay and Amica Chips, Mondelez International, Mafrig, JFC, International, Aperitivos Flaper, Bag Snacks, Universal Robina, and Arca Continental.

The Latin AAmericanextruded snack food market is highly competitive, characterized by the presence of both multinational giants and well-established regional players. This dynamic environment fosters continuous innovation, aggressive branding, and strategic market expansion initiatives. Major global companies leverage their financial strength and established distribution systems to maintain dominance, while local manufacturers capitalize on cultural insights and consumer familiarity to retain market share. The market sees frequent product launches, reformulations, and co-branding efforts aimed at capturing niche segments and adapting to shifting dietary preferences. Additionally, competition extends beyond traditional retail channels, with increasing emphasis on digital platforms and convenience stores. As consumer awareness around nutrition grows, companies are also under pressure to offer healthier alternatives without compromising on taste or texture. The convergence of these factors creates a fast-paced and evolving landscape where adaptability and responsiveness are key to sustaining a competitive advantage.

RECENT HAPPENINGS IN THE MARKET

• In January 2024, PepsiCo launched a new line of plant-based extruded snacks in Brazil, targeting health-conscious consumers and expanding its portfolio beyond traditional offerings.
• In March 2024, Grupo Bimbo introduced an exclusive digital platform in Mexico that connects directly with retailers to streamline snack distribution and improve inventory efficiency across urban and rural locations.
• In June 2024, Mondelez expanded its production facility in Argentina to increase output of locally flavored extruded snacks by aiming to meet rising demand and reduce lead times in distribution.
• In September 2024, Nestlé partnered with a local Peruvian quinoa supplier to develop nutrient-rich extruded snacks, which is reinforcing its commitment to functional and natural ingredients tailored to regional tastes.
• In November 2024, Barcel, a leading snack brand in Latin America, rolled out a nationwide campaign in Colombia promoting limited-edition cheese-coated extruded snacks, which is leveraging social media influencers to boost engagement and trial rates.

MARKET SEGMENTATION

This research report on the Latin America Extruded Snack Food Market has been segmented and sub-segmented based on type, distribution channel, and region.

By Type

• Potato
• Corn
• Rice
• Tapioca
• Mixed Grain
• Others

By Distribution Channel

• Hypermarkets
• Independent Retailers
• Convenience Stores

By Region

• Brazil
• Mexico
• Argentina
• Chile
• Rest Of Latin America